Nikkei rises to 5-month high as Middle East calm boosts tech shares
A woman walks past an electronic board showing the Nikkei 225 index on the Tokyo Stock Exchange in Tokyo on June 17, 2025. (Photo by Kazuhiro NOGI/ AFP)
TOKYO: Japan's Nikkei share average touched its highest in almost five months on Thursday, as a period of calm in the Middle East encouraged investors to buy back riskier assets, particularly chip and other high-tech shares.
The Nikkei climbed 1.7% to 39,584.58 at the close and reached 39,615.59 at its highest point during the session, a level last seen on January 31.
Artificial intelligence-linked stocks stood out, with startup investor SoftBank Group climbing 5.5% and chip-testing equipment maker Advantest advancing 5.0%.
By contrast, the broader and less tech-heavy Topix rose 0.8%. A sub-index of growth shares gained 0.9%, outpacing a 0.8% increase in value shares.
Markets globally have been soothed by the ceasefire between Israel and Iran this week, which reduced the risk of disruptions to global oil supply. Japan imports virtually all of its crude, and energy-intensive manufacturing is a key national industry.
"Growth shares, particularly semiconductor-related stocks, are benefitting from the improvement in risk sentiment," said Maki Sawada, a strategist at Nomura Securities.
The AI boom narrative is still intact, she said, adding that investors are rotating into tech from defensive sectors.
Food and pharmaceuticals were among the few Topix industry groups to decline on the day, although losses were mild.
The Nikkei's worst-performing stock, however, was chipmaker Renesas, which tumbled 12% on signs it would push back long-term targets by five years to 2035 at an investor presentation later in the day.
The best performer was industrial machinery maker Ebara , which soared close to 10% after Tokai Tokyo Intelligence Laboratory reiterated its outperform rating on the stock. - Reuters
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New Straits Times
6 hours ago
- New Straits Times
Nikkei rises to 5-month high as Middle East calm boosts tech shares
TOKYO: Japan's Nikkei share average touched its highest in almost five months on Thursday, as a period of calm in the Middle East encouraged investors to buy back riskier assets, particularly chip and other high-tech shares. The Nikkei climbed 1.7 per cent to 39,584.58 at the close and reached 39,615.59 at its highest point during the session, a level last seen on January 31. Artificial intelligence-linked stocks stood out, with startup investor SoftBank Group climbing 5.5 per cent and chip-testing equipment maker Advantest advancing 5.0 per cent. By contrast, the broader and less tech-heavy Topix rose 0.8 per cent. A sub-index of growth shares gained 0.9 per cent, outpacing a 0.8 per cent increase in value shares. Markets globally have been soothed by the ceasefire between Israel and Iran this week, which reduced the risk of disruptions to global oil supply. Japan imports virtually all of its crude, and energy-intensive manufacturing is a key national industry. "Growth shares, particularly semiconductor-related stocks, are benefitting from the improvement in risk sentiment," said Maki Sawada, a strategist at Nomura Securities. The AI boom narrative is still intact, she said, adding that investors are rotating into tech from defensive sectors. Food and pharmaceuticals were among the few Topix industry groups to decline on the day, although losses were mild. The Nikkei's worst-performing stock, however, was chipmaker Renesas, which tumbled 12 per cent on signs it would push back long-term targets by five years to 2035 at an investor presentation later in the day. The best performer was industrial machinery maker Ebara , which soared close to 10 per cent after Tokai Tokyo Intelligence Laboratory reiterated its outperform rating on the stock.
The Star
6 hours ago
- The Star
Nikkei rises to 5-month high as Middle East calm boosts tech shares
A woman walks past an electronic board showing the Nikkei 225 index on the Tokyo Stock Exchange in Tokyo on June 17, 2025. (Photo by Kazuhiro NOGI/ AFP) TOKYO: Japan's Nikkei share average touched its highest in almost five months on Thursday, as a period of calm in the Middle East encouraged investors to buy back riskier assets, particularly chip and other high-tech shares. The Nikkei climbed 1.7% to 39,584.58 at the close and reached 39,615.59 at its highest point during the session, a level last seen on January 31. Artificial intelligence-linked stocks stood out, with startup investor SoftBank Group climbing 5.5% and chip-testing equipment maker Advantest advancing 5.0%. By contrast, the broader and less tech-heavy Topix rose 0.8%. A sub-index of growth shares gained 0.9%, outpacing a 0.8% increase in value shares. Markets globally have been soothed by the ceasefire between Israel and Iran this week, which reduced the risk of disruptions to global oil supply. Japan imports virtually all of its crude, and energy-intensive manufacturing is a key national industry. "Growth shares, particularly semiconductor-related stocks, are benefitting from the improvement in risk sentiment," said Maki Sawada, a strategist at Nomura Securities. The AI boom narrative is still intact, she said, adding that investors are rotating into tech from defensive sectors. Food and pharmaceuticals were among the few Topix industry groups to decline on the day, although losses were mild. The Nikkei's worst-performing stock, however, was chipmaker Renesas, which tumbled 12% on signs it would push back long-term targets by five years to 2035 at an investor presentation later in the day. The best performer was industrial machinery maker Ebara , which soared close to 10% after Tokai Tokyo Intelligence Laboratory reiterated its outperform rating on the stock. - Reuters
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Global matcha 'obsession' drinks Japan tea farms dry
LOS ANGELES: At a minimalist Los Angeles matcha bar, powdered Japanese tea is prepared with precision, despite a global shortage driven by the bright green drink's social media stardom. Of the 25 types of matcha on the menu at Kettl Tea, which opened on Hollywood Boulevard this year, all but four were out of stock, the shop's founder Zach Mangan told AFP. "One of the things we struggle with is telling customers that, unfortunately, we don't have" what they want, he said. With its deep grassy aroma, intense colour and pick-me-up effects, the popularity of matcha "has grown just exponentially over the last decade, but much more so in the last two to three years," the 40-year-old explained. It is now "a cultural touchpoint in the Western world" -- found everywhere from ice-cream flavour boards to Starbucks. This has caused matcha's market to nearly double over a year, Mangan said. "No matter what we try, there's just not more to buy." Thousands of miles (kilometres) away in Sayama, northwest of Tokyo, Masahiro Okutomi -- the 15th generation to run his family's tea business -- is overwhelmed by demand. Tea farm owner Masahiro Okutomi presenting the steps of tea processing in a factory in Sayama. - AFP "I had to put on our website that we are not accepting any more matcha orders," he said. Producing the powder is an intensive process: the leaves, called "tencha," are shaded for several weeks before harvest, to concentrate the taste and nutrients. They are then carefully deveined by hand, dried and finely ground in a machine. "It takes years of training" to make matcha properly, Okutomi said. "It's a long-term endeavour requiring equipment, labour and investment." "I'm glad the world is taking an interest in our matcha... but in the short term, it's almost a threat -- we just can't keep up," he said. The matcha boom has been fuelled by online influencers like Andie Ella, who has more than 600,000 subscribers on YouTube and started her own brand of matcha products. At the pastel-pink pop-up shop she opened in Tokyo's hip Harajuku district, dozens of fans were excitedly waiting to take a photo with the 23-year-old Frenchwoman or buy her cans of strawberry or white chocolate flavoured matcha. "Matcha is visually very appealing," Ella told AFP. To date, her matcha brand, produced in Japan's rural Mie region, has sold 133,000 cans. Launched in November 2023, it now has eight employees. "Demand has not stopped growing," she said. In 2024, matcha accounted for over half of the 8,798 tonnes of green tea exported from Japan, according to agriculture ministry data -- twice as much as a decade ago. Tokyo tea shop Jugetsudo, in the touristy former fish market area of Tsukiji, is trying to control its stock levels given the escalating demand. "We don't strictly impose purchase limits, but we sometimes refuse to sell large quantities to customers suspected of reselling," said store manager Shigehito Nishikida. "In the past two or three years, the craze has intensified: customers now want to make matcha themselves, like they see on social media," he added. Anita Jordan, a 49-year-old Australian tourist in Japan, said her "kids are obsessed with matcha." "They sent me on a mission to find the best one," she laughed. The global matcha market is estimated to be worth billions of dollars, but it could be hit by US President Donald Trump's tariffs on Japanese products -- currently 10 per cent, with a hike to 24 per cent in the cards. Shortages and tariffs mean "we do have to raise prices. We don't take it lightly," said Mangan at Kettl Tea, though it hasn't dampened demand so far. "Customers are saying: 'I want matcha, before it runs out'." At Kettl Tea, matcha can be mixed with milk in a latte or enjoyed straight, hand-whisked with hot water in a ceramic bowl to better appreciate its subtle taste. It's not a cheap treat: the latter option costs at least US$10 per glass, while 20 grams (0.7 ounces) of powder to make the drink at home is priced between $25 and $150. Japan's government is encouraging tea producers to farm on a larger scale to reduce costs. But that risks sacrificing quality, and "in small rural areas, it's almost impossible," grower Okutomi said. The number of tea plantations in Japan has fallen to a quarter of what it was 20 years ago, as farmers age and find it difficult to secure successors, he added. "Training a new generation takes time... It can't be improvised," Okutomi said. - AFP
